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Suncorp weighs options as life profits improve

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Suncorp has yet to decide on the future of its life insurance business, which reported a sharp rise in net profit for the six months to December 31.

CEO Michael Cameron says strategic alternatives including a partnership, sale or reinsurance are being explored.

“Pleasingly, optimisation of the Australian life insurance business is progressing well,” he said. “The focus is on providing great customer outcomes and delivering better returns for our shareholders.”

The business increased after-tax net profit to $30 million from $11 million in the corresponding period of 2016. When measured on an underlying basis, net profit grew 56% to $39 million.

Total annual inforce premium increased 0.9% to $808 million, but total new business fell 3% to $32 million. Planned margins improved 33.3% to $12 million.